Shop around.

Prices vary from company to company, so it pays to shop around. Get at least
three price quotes. You can call companies directly or access information on the
Internet. Your state insurance department may also provide comparisons of prices
charged by major insurers.
You buy insurance to protect you financially and
provide peace of mind. It's important to pick a company that is financially
stable. Check the financial health of insurance companies with rating companies
such as A.M. Best ( http://www.ambest.com ) and Standard & Poor's (
http://www.standardandpoors.com/ratings ) and consult consumer magazines.

Get quotes from different types of insurance companies. Some sell through
their own agents. These agencies have the same name as the insurance company.
Some sell through independent agents who offer policies from several insurance
companies. Others do not use agents. They sell directly to consumers over the
phone or via the Internet.

But don't shop by price alone. You want a
company that answers your questions and handles claims fairly and efficiently.
Ask friends and relatives for their recommendations. Contact your state
insurance department to find out whether they make available consumer complaint
ratios by company.

Select an agent or company representative that takes
the time to answer your questions. Remember, you'll be dealing with this company
if you have an accident or other emergency.
Before you buy a car, compare
insurance costs.

Before you buy a new or used car, check into insurance
costs. Your premium is based in part on the car's sticker price, the cost to
repair it, its overall safety record, and the likelihood of theft. Many insurers
offer discounts for features that reduce the risk of injuries or theft. These
include air bags, anti-lock brakes, daytime running lights and anti-theft
devices. Some states require insurers to give discounts for cars equipped with
air bags or anti-lock brakes.

Cars that are favorite targets for thieves
cost more to insure. Information that can help you decide what car to buy is
available from the Insurance Institute for Highway Safety ( http://www.iihs.org
).

Ask for higher deductibles.
Deductibles represent
the amount of money you pay before your insurance policy kicks in. By requesting
higher deductibles, you can lower your costs substantially. For example,
increasing your deductible from $200 to $500 could reduce your collision and
comprehensive coverage cost by 15% to 30%. Going to a $1,000 deductible can save
you 40% or more.

Reduce
coverage on older cars.
Consider dropping collision
and/or comprehensive coverages on older cars. It may not be cost effective to
continue insuring cars worth less than 10 times the amount you would pay for
coverage. Any claim payment you receive would not substantially exceed your
premiums minus the deductible. Claims occur on average only once every 11 or 12
years. Auto dealers and banks can tell you the worth of cars. Or you can look it
up online at Kelley Blue Book ( http://www.kbb.com ). Review your coverage at
renewal time to make sure your insurance needs haven't changed.


Buy your homeowners and auto coverage from the same insurer.

Many insurers will give you a discount if you buy two or more types
of insurance from them. Also you may get a reduction if you have more than one
vehicle insured with the same company. Some insurers reduce premiums for
long-time customers. But shop around; you may save money buying from different
insurance companies despite the multi-policy discount.

Take
advantage of low-mileage discounts.
Some companies offer discounts
to motorists who drive a lower than average number of miles per year. Low
mileage discounts can also apply to drivers who carpool to
work.

Ask about group
insurance.
Some companies offer reductions to drivers who get
insurance through a group plan from their employers, through professional,
business and alumni groups or other associations. Ask your employer and groups
or clubs though which you belong.

Maintain good
credit.
Your credit rating may affect what you pay for insurance.
Credit makes insurance rates more accurate, fair and objective. While the use of
insurance scoring varies from state to state and company to company, it is a
fact that drivers with long, stable credit records have fewer accidents than
drivers who don't. Most people have good credit histories, so most people
benefit.

Seek out safe driver discounts.
Companies
offer discounts to policyholders who have not had any accidents or moving
violations for a number of years. You may also qualify for a cut if you have
recently taken a defensive driving course.

Inquire about other
discounts.
You may get a break on your insurance if you are over 50
or in some cases 55 and retired or if there is a young driver on the policy who
is a good student, has taken a drivers education course or is at a college,
generally at least 100 miles away.

When you comparison shop, inquire
about discounts for:
$500 deductible
$1,000 deductible

More than
1 car
No accidents in 3 years
No moving violations in 3 years

Drivers over 50-55 years of age
Driver training course
Defensive
driving course
Anti-theft device
Low annual mileage
Air bag

Anti-lock brakes
Daytime running lights
Student drivers with good
grades
Auto and homeowners coverage with the same company
College
students away from home
Long-time customer
Other discounts
*The
discounts listed may not be available in all states or from all insurance
companies.

But don't forget that the key to savings is not the discounts
but the final price. A company that offers few discounts may still have a lower
overall price.